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Discontinued Operations
 12 Months Ended
Dec. 31, 2020
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Other income (expense), net consists of the following:
(In thousands)202020192018
(Loss) gain on investment in kaléo accounted for under fair value method$(60,900)$28,482 $30,600 
Loss on sale of Bright View Technologies(2,299)— — 
Corporate costs associated with the divestiture of Personal Care Films(851)— — 
COVID-19-related expenses (a)(2,231)— — 
Other(1,013)(111)(145)
Total$(67,294)$28,371 $30,455 
(a) Costs associated with operating under COVID-19 conditions include employee overtime expenses associated with absenteeism, personal protective equipment supplies and facility maintenance.
The gain on investment in kaléo accounted for under the fair value method of $28.5 million includes a cash dividend of $17.6 million received in 2019 from kaléo. See Note 4 for more details on the investment in kaléo.
Mergers, Acquisitions and Dispositions Disclosures
Divestitures
Personal Care Films
On August 24, 2020, the Company entered into a definitive agreement to sell Personal Care Films for an aggregate purchase price of approximately $60.5 million, subject to customary adjustments. Upon completion of the sale on October 30, 2020, the Company recognized a pre-tax loss of $50.0 million ($46.7 million after-tax) for the year ended December 31, 2020, which includes the realization of other comprehensive losses on foreign currency translation adjustments of $25.3 million previously reflected in shareholder’s equity. In addition, the Company agreed to provide certain transition services related to finance, human resources and information technology which are expected to end in the first half of 2021. Personal Care Films was previously reported in the PE Films segment.
The following table summarizes the financial results of discontinued operations reflected in the Consolidated Statements of Income for the year ended December 31, 2020, 2019 and 2018:
Years Ended December 31
(In thousands)202020192018
Revenues and other items:
Sales$110,246 $146,034 $213,637 
Other income (expense), net(333)6,424 4 
109,913 152,458 213,641 
Costs and expenses:
Cost of goods sold92,079 126,371 170,091 
Freight5,229 7,083 8,857 
Selling, general and administrative16,824 17,754 17,354 
Research and development8,863 11,743 12,035 
Asset impairments and costs associated with exit and disposal activities, net of adjustments1,529 3,341 2,515 
Goodwill impairment— — 46,792 
Loss on sale of business50,027 — — 
Total174,551 166,292 257,644 
Income (loss) from discontinued operations before income taxes(64,638)(13,834)(44,003)
Income tax expense (benefit)(6,027)(3,632)(7,281)
Income (loss) from discontinued operations, net of tax$(58,611)$(10,202)$(36,722)
The assets and liabilities of the discontinued operations reflected in the Consolidated Balance Sheets as of December 31, 2020 and 2019, respectively were as follows:
December 31
(In thousands)20202019
Assets
Accounts and other receivables, net$— $18,441 
Income tax recoverable— 1,439 
Inventories— 17,175 
Prepaid expenses and other (b)1,339 363 
Total current assets1,339 37,418 
Property, plant and equipment, net— 69,334 
Right-of-use leased assets— 728 
Deferred income taxes— 694 
Other assets151 105 
Total non-current assets151 70,861 
Total assets of discontinued operations$1,490 $108,279 
Liabilities
Accounts payable$— $16,361 
Accrued expenses (b)7,521 6,344 
Lease liability, short-term— 575 
Total current liabilities7,521 23,280 
Lease liability, long-term— 351 
Total non-current liabilities— 351 
Total liabilities of discontinued operations (a)$7,521 $23,631 
(a) Pension and other postretirement benefit liabilities related to Personal Care Films have been retained by the Company.
(b) The consolidated balance sheet of discontinued operations as of December 31, 2020 includes $0.4 million of other receivables related to the settlement of customary post-closing adjustments, deferred assets of $0.9 million and deferred obligations of $5.3 million related to transition services, accrued severance of $2.1 million, and other miscellaneous accrued expenses of $0.2 million.
The following table provides significant operating and investing cash flow information for discontinued operations:
Year Ended December 31,
(In thousands)202020192018
Operating activities:
Depreciation and amortization$5,511 $9,962 $9,312 
Gain from the sale of the Shanghai manufacturing facility assets
— (6,316)— 
Loss on sale of Personal Care Films50,027 — — 
Total55,538 3,646 9,312 
Investing activities:
Net proceeds on sale of Personal Care Films$55,115 $— $— 
Proceeds from the sale of the Shanghai manufacturing facility assets
— 10,936 — 
Capital expenditures(1,912)(15,353)(19,475)
Total$53,203 $(4,417)$(19,475)
Bright View
In December 2020, the Company entered into a definitive agreement and completed the sale of Bright View for an aggregate purchase price of $1.5 million, subject to customary adjustments, which resulted in the recognition of a pre-tax loss of $2.3 million ($1.8 million after-tax) included in “Other income (expense), net” in the consolidated statements of income for the year ended December 31, 2020. In addition, the Company agreed to provide certain transition services related to information technology. The sale does not represent a strategic shift nor does it have a major effect on the Company’s
historical and ongoing operations, thus all financial information for Bright View has been presented as continuing operations. Bright View historically has been reported in the PE Films segment.
Assets Held For Sale
In July 2019, the Company committed to a plan to close its manufacturing facility in Lake Zurich, Illinois, which historically was reported by the Company within the personal care component of its PE Films segment. In March 2020, this facility was shut down and the production of elastic materials it previously produced was transferred to Terre Haute, Indiana.
In the third quarter of 2020, the held for sale criteria was met since the Company expected the sale of the facility to be completed within one year. As of December 31, 2020, the disposal group carrying value of $4.6 million consists of land, building, and building improvements and is reported in "Prepaid expenses and other" in the Consolidated Balance Sheet. These assets were not included as part of the sale of Personal Care Films.